Exhibit 99.1
News Release
For Release October 17, 2007
10:00 A.M.
Contact: Joseph G. Sawyer, Senior Vice President & Chief Financial Officer or
Robin D. Brown, Senior Vice President & Director of Marketing
(803) 951- 2265
First Community Corporation Announces Record Earnings
Lexington, S.C. October 17, 2007 - Today First Community Corporation (FCCO), the holding company for First Community Bank, reported net income for the third quarter and year-to-date 2007. Net income for the third quarter was $1.15 million which is a record for the company and its first time to exceed $1 million in a quarter. On a linked quarter basis this compares to the second quarter of 2007 net income of $893 thousand, an increase of 28.6%. Diluted earnings per share were $.35 for the third quarter of 2007 compared to $.27 in the second quarter of 2007, an increase of 29.6%. Total assets for the company were $577.8 million at September 30, 2007 compared to $532.0 million at September 30, 2006, an increase of 8.6%. Shareholders’ equity at September 30, 2007 was $64.2 million compared to $61.7 million at September 30, 2006, an increase of 4.1%.
Net income for the third quarter of 2007 was $1.15 million compared to $903 thousand in the third quarter of 2006, an increase of 27.1%. Diluted earnings per share were $.35 for the third quarter of 2007 compared to $.27 in the third quarter of 2006, an increase of 29.6%. Net income for the nine months ended September 30, 2007 was $2.77 million compared to $2.64 million in 2006 an increase of 4.8%. Year-to-date diluted earnings per share for 2007 were $.84 the same as in 2006.
Mike Crapps, president and chief executive officer commented on the company’s performance in the third quarter of 2007 by saying, “We are extremely excited with the results for the third quarter of this year which are even stronger than we had anticipated. One of the key factors in our success this quarter was the benefit of some significant infrastructure investments made in late 2006 and early 2007. We have begun to leverage the investment in additional personnel, and are seeing the results of efficiency improvements and expense controls that have been implemented as well as enhancements made to non-interest income. We will continue to benefit from these investments in the future.” Crapps noted, “It is gratifying to see the plan we have developed and implemented has generated results sooner than we expected. This is a real tribute to all of our employees who have made significant contributions to the execution of this plan.”
Crapps continued, “As expected, growth in the loan portfolio slowed in the third quarter due primarily to some anticipated larger loan payoffs, but also due to some softening of demand as would be expected in this economic climate. In the last twelve months the bank has experienced total loan growth of $33.5 million, a 12.4% increase. This loan growth has allowed us to increase our loan-to-deposit ratio to 73.3% at the end of the third quarter of 2007 compared to 67.5% at the end of the third quarter of 2006. While our growth has been strong, we are extremely pleased that we have continued to maintain the quality in our loan portfolio. At September 30, 2007, our non-performing assets were only 0.20% of total assets and year-to-date there is a net loan recovery of $6 thousand.
Crapps noted, “We were disappointed that the net interest margin improvement from the first to second quarter was not sustained in the third quarter. While still above first quarter levels the linked quarter contraction of five basis points is primarily attributable to rising funding costs and the flat quarter in loan growth. In anticipation of declining interest rates and potentially slower loan demand, we initiated a $20.0 million leverage transaction during September. The yield curve at the time allowed us to pick up approximately 140 basis points with minimal interest rate risk on the transaction. This also contributed slightly to the decrease in our margin during the third quarter.”
Core non-interest income increased by $298 thousand on a linked quarter basis. This increase was primarily attributed to an increase in deposit service charges and debit card transaction fees and a favorable impact of adjustments to certain assets and liabilities to fair value during the quarter.
Non-interest expense decreased by $41 thousand on a linked quarter basis and has decreased each quarter this year. This was anticipated and now returns the company to nearly the same non-interest expense level as the third quarter of 2006. During the quarter, the company announced and implemented the consolidation of its College Street office in Newberry into its Wilson Road office also located in Newberry. This consolidation will allow the company to combine its resources to offer customers in the Newberry market an enhanced level of customer service as well as provide the company with a cost effective way to serve the Newberry market.
The corporation also announced that the Board of Directors has approved a cash dividend for the second quarter of 2007. The Company declared a $.07 per share dividend payable November 15, 2007 to shareholders of record as of October 31, 2007.
The company has a Share Repurchase Plan that authorizes the repurchase of up to 200,000 shares of the company’s common stock. As of September 30, 2007, 174,613 shares have been repurchased with a total investment of $3.04 million.
First Community Corporation stock trades on the NASDAQ Capital Market under the symbol “FCCO” and is the holding company for First Community Bank, a local community bank based in the midlands of South Carolina. First Community Bank operates eleven banking offices located in Lexington, Forest Acres, Irmo, Gilbert, Cayce - West Columbia, Chapin, Northeast Columbia, Newberry, Prosperity, Red Bank and Camden.
Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.
Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
FIRST COMMUNITY CORPORATION
BALANCE SHEET DATA
(Dollars in thousand, except per share data)
| September 30, | December 31, |
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| 2007 | 2006 | 2006 |
|---|
| | | |
|---|
| Total Assets | | | $ | 577,751 | | $ | 532,049 | | $ | 548,056 | |
| Investment Securities | | | | 187,441 | | | 179,804 | | | 176,523 | |
| Loans | | | | 302,829 | | | 269,773 | | | 275,189 | |
| Allowance for Loan Losses | | | | 3,525 | | | 3,252 | | | 3,215 | |
| Total Deposits | | | | 413,301 | | | 399,194 | | | 414,941 | |
| Securities Sold Under Agreements to | | |
| Repurchase | | | | 26,699 | | | 21,322 | | | 19,472 | |
| Federal Home Loan Bank Advances | | | | 52,936 | | | 29,871 | | | 29,757 | |
| Junior Subordinated Debt | | | | 15,464 | | | 15,464 | | | 15,464 | |
| Shareholders' Equity | | | | 64,172 | | | 61,694 | | | 63,208 | |
| | | | | | | | | | | | |
| Book Value Per Share | | | $ | 19.91 | | $ | 18.91 | | $ | 19.36 | |
| Tangible Book Value Per Share | | | $ | 10.63 | | $ | 9.42 | | $ | 10.05 | |
| Equity to Assets | | | | 11.11 | % | | 11.60 | % | | 11.53 | % |
| Loan to Deposit Ratio | | | | 73.27 | % | | 67.58 | % | | 66.32 | % |
| Allowance for Loan Losses/Loans | | | | 1.16 | % | | 1.21 | % | | 1.17 | % |
Average Balances:
| Three months ended | Nine months ended |
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| September 30, | September 30, |
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| 2007 | 2006 | 2007 | 2006 |
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| Average Total Assets | | | $ | 561,036 | | $ | 534,499 | | $ | 547,307 | | $ | 503,154 | |
| Average Loans | | | | 302,269 | | | 262,928 | | | 293,478 | | | 242,263 | |
| Average Earning Assets | | | | 483,684 | | | 454,460 | | | 469,233 | | | 430,935 | |
| Average Deposits | | | | 410,411 | | | 401,518 | | | 403,932 | | | 379,017 | |
| Average Other Borrowings | | | | 81,590 | | | 67,583 | | | 75,256 | | | 64,301 | |
| Average Shareholders' Equity | | | | 63,637 | | | 60,867 | | | 63,263 | | | 55,692 | |
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| Asset Quality | | | | | | | | | | | | | | |
| Nonperforming Assets: | | | | | | | | | | | | | | |
| Non-accrual loans | | | $ | 557 | | $ | 46 | | $ | 557 | | $ | 46 | |
| Other real estate owned | | | | 63 | | | 50 | | | 63 | | | 50 | |
| Accruing loans past due 90 days or more | | | | 542 | | | 51 | | | 542 | | | 51 | |
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| Total nonperforming assets | | | $ | 1,162 | | $ | 147 | | $ | 1,162 | | $ | 147 | |
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| Loans charged-off | | | $ | 56 | | $ | 4 | | $ | 252 | | $ | 133 | |
| Overdrafts charged-off | | | | 34 | | | 39 | | | 110 | | | 105 | |
| Loan recoveries | | | | (47 | ) | | (21 | ) | | (258 | ) | | (60 | ) |
| Overdraft recoveries | | | | (9 | ) | | (5 | ) | | (55 | ) | | (20 | ) |
| Net Charge-offs | | | $ | 34 | | $ | 17 | | $ | 49 | | $ | 158 | |
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| Net Charge-offs to Average Loans | | | | 0.01 | % | | 0.01 | % | | 0.02 | % | | 0.07 | % |
Post Office Box 64 / Lexington, SC 29071
FIRST COMMUNITY CORPORATION
INCOME STATEMENT DATA
(Dollars in thousands, except per share data)
| Three months ended | Nine months ended |
|---|
| September 30, | September 30, |
|---|
| 2007 | 2006 | 2007 | 2006 |
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| | | | |
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| Interest Income | | | $ | 7,997 | | $ | 7,288 | | $ | 22,836 | | $ | 19,763 | |
| Interest Expense | | | | 4,088 | | | 3,538 | | | 11,551 | | | 9,215 | |
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| Net Interest Income | | | | 3,909 | | | 3,750 | | | 11,285 | | | 10,548 | |
| Provision for Loan Losses | | | | 134 | | | 140 | | | 360 | | | 389 | |
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| Net Interest Income After Provision | | | | 3,775 | | | 3,610 | | | 10,925 | | | 10,159 | |
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| Non-interest Income: | | | | | | | | | | | | | | |
| Deposit service charges | | | | 714 | | | 652 | | | 1,972 | | | 1,775 | |
| Mortgage origination fees | | | | 77 | | | 133 | | | 258 | | | 379 | |
| Commission on sale of non-deposit products | | | | 75 | | | 54 | | | 219 | | | 261 | |
| Gain (loss) on sale of securities | | | | - | | | - | | | 74 | | | (69 | ) |
| Gain on early extinguishment of debt | | | | - | | | - | | | - | | | 159 | |
| Fair value adjustments | | | | 138 | | | (47 | ) | | 46 | | | 90 | |
| Other | | | | 359 | | | 284 | | | 1,038 | | | 759 | |
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| Total non-interest income | | | | 1,363 | | | 1,076 | | | 3,607 | | | 3,354 | |
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| Non-interest Expense: | | |
| Salaries and employee benefits | | | | 1,839 | | | 1,765 | | | 5,448 | | | 5,145 | |
| Occupancy | | | | 340 | | | 277 | | | 912 | | | 689 | |
| Equipment | | | | 317 | | | 320 | | | 949 | | | 896 | |
| Marketing and public relations | | | | 97 | | | 102 | | | 376 | | | 249 | |
| Amortization of intangibles | | | | 167 | | | 167 | | | 502 | | | 469 | |
| Other | | | | 713 | | | 776 | | | 2,426 | | | 2,310 | |
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| Total non-interest expense | | | | 3,473 | | | 3,407 | | | 10,613 | | | 9,758 | |
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| Income Before Taxes | | | | 1,665 | | | 1,279 | | | 3,919 | | | 3,755 | |
| Income Tax Expense | | | | 517 | | | 376 | | | 1,152 | | | 1,114 | |
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| Net Income | | | $ | 1,148 | | $ | 903 | | $ | 2,767 | | $ | 2,641 | |
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| Primary Earnings Per Share | | | $ | 0.35 | | $ | 0.28 | | $ | 0.85 | | $ | 0.87 | |
| Diluted Earnings Per Share | | | $ | 0.35 | | $ | 0.27 | | $ | 0.84 | | $ | 0.84 | |
| | | | | | | | | | | | | | | |
| Average primary shares outstanding | | | | 3,237,183 | | | 3,267,820 | | | 3,240,665 | | | 3,041,824 | |
| Average diluted shares outstanding | | | | 3,281,757 | | | 3,361,917 | | | 3,294,726 | | | 3,137,899 | |
| Return on Average Assets | | | | 0.81 | % | | 0.67 | % | | 0.68 | % | | 0.70 | % |
| Return on Average Equity | | | | 7.16 | % | | 5.88 | % | | 5.84 | % | | 6.34 | % |
| Return on Average Tangible Equity | | | | 13.54 | % | | 12.61 | % | | 11.18 | % | | 13.31 | % |
| Net Interest Margin | | | | 3.21 | % | | 3.27 | % | | 3.22 | % | | 3.27 | % |
| Net Interest Margin Taxable Equivalent | | | | 3.29 | % | | 3.36 | % | | 3.30 | % | | 3.36 | % |
Post Office Box 64 / Lexington, SC 29071
